Refer to Figure 15-16. Which of the following would be true if government regulators require the natural monopoly to produce at the economically efficient output level?
A) This results in a misallocation of resources.
B) The firm will sustain persistent losses and will not continue in business in the long run.
C) The marginal cost of producing the last unit sold exceeds the marginal benefit.
D) The firm will break even.
B
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a. Vitamin A b. Greek food c. Exercise d. Chicory
If the quality of items improves over time, the CPI ________ inflation
a. overstates b. understates c. equals d. approximates
Which of the following items is included when computing M1?
a. Checking accounting entries. b. Currency in circulation. c. All of the above. d. None of the above.
As more of a good is produced, its opportunity cost tends to increase because resources are not equally efficient at producing all goods
a. True b. False Indicate whether the statement is true or false